For first home buyers looking to enter the property market in Canberra, this Spring might be the right time to make the move to becoming a property owner – but you may need to change your priorities to get into the market.
The combination of Canberra’s rising interest rates and housing affordability concerns means there is a strong case for first home buyers to look at investing in a unit this spring.
Tips for Canberra first home buyers this spring:
- Opting for a smaller loan means that a first home buyer will have a larger deposit and will minimise mortgage stress caused by interest rate increases.
- Consider buying a unit as on average 18.4% of an income is dedicated to a mortgage payment compared to 27.1% for a house.
- Take advantage of Government schemes to assist first home buyers into the Australian property market - such as:
- Team up with a trusted and experienced real estate agent at Maloney’s Property.
What is also important to look at when buying your first home is the total amount you need to borrow.
Obviously, the more that is borrowed, the longer it takes to save for a deposit, and with rising interest rates, the capacity to borrow will be diminished.
Therefore, looking at a unit rather than a house could be a wise decision for first home buyers looking to buy in Canberra.
The recent Domain House Price Report showed the average price of a house in Canberra for the June Quarter 2022 was $1,154,535 compared to $599,735 for a unit.
Therefore, opting to enter the Canberra property market by purchasing a unit will mean a much smaller mortgage.
The flow on from this is that it will take less time to save for a mortgage and repayments will be lower.
Making the move, as a first home buyer, into the Canberra property market can be complex and confusing as you negotiate Australian property prices, interest rates, mortgages and home loans and Government support.
Remember when interest rates rise there is an impact for some first home buyers on their borrowing capacity and time needed to save for a mortgage.
First home buyers looking to enter the Canberra property market this Spring could maximise the size of their deposit by sticking to a set price range and choosing to opt for a unit instead of a house.
Spring is a great time to buy property in Canberra, but you need to know the market, do your research, get good advice and partner with a real estate agent, such as Maloney’s Property.
Maloney’s Property is Canberra’s trusted real estate agency and has been working with first home buyers to get into the Australian property market for the last 30 years.
So why not contact Maloney’s Property to discuss your move as a first home buyer into the Canberra property market.
